Intermediate Accounting (ACCM3101)
Faculty of Economics and Management Science (FEMS)
Semester: Resit
Level: 300
Year: 2017
Section A; COST ANALYSIS
Question one: 30 marks
You work as an accountant to Zaki and the following trial balance has been extracted on 31
st
December 2014:
Rents, rates and insurances
Returns.
Advertising expenses
Distribution costs
Heating and lighting
Stock as at 01
st
Jan 14
Wages and salaries
Communication expenses
Discounts allowed
Discount received
Interest paid
FCFA Dr
34,000
3,000
12,000
11,000
28,000
26,000
109,000
25,000
4,000
-
1,000
FCFA Cr
-
1,000
-
-
-
-
-
-
-
1,000
Owners’ equity
Equipment at cost
Land and building
Depreciation (equip at 1 Jan 14)
Capital
Long-term loan
Debtors
Creditors
Bank overdraft
Sales
Purchases
FCFA Dr
25,000
60,000
200,000
-
-
-
32,000
-
-
-
138,000
FCFA Cr
-
-
-
20,000
220,000
20,000
-
18,000
2,000
426,000
Notes at 31
st
December 2014:
❖ Stock in hand was valued at 33,000F.
❖ Salaries owing amounted to 6,000F.
❖ Advertising prepaid amounted to 2,000F.
❖ Equipment is to be depreciated at 25% on cost.
Work required:
1.1. Prepare the statement of income of Zaki for the year ended 31
st
December 2014.
1.2. Prepare the statement of financial position of Zaki at 31
st
December 2014.
Question two: 25 marks
The financial year of a company ended on 31
st
December 20x7. Prepare total debtors account
and total creditors account for this company in order to produce end of year figures for debtors.
You are given the following information for the financial year from books of original entry.
FCFA
Purchases: -cash 144,400
-credit 4,966,000
Sales: -cash 3,448,900
-credit 2,681,870
Total receipts from customers 6,005,700
Total payments to suppliers 5039,700
Discount allowed (all to credit customers) 55,200
Discount received (all from credit suppliers) 35,100
Refund given to cash customers 50,700
Balance on the sales ledger set off against
balance in the purchase’s ledger 700
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
Resit Course: Intermediate Accounting: ACCT301
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
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Bad debts written off 7,800
Increase in the provision for bad debts 900
Credit notes issued to credit customers 41,400
Credit notes received from credit suppliers 14,800
According to the audited financial statements for the previous year, debtors and creditors as at
31
st
December 20x6 were 265,550 FCFA and 434,500FCFA respectively.
Required:
1) To draw up the total account entering end of year totals for debtors and creditors.
2) Explain what a debit balance and a credit balance represent in a control account
Question three: 15 marks
On 01/01/201x Aaron, a small trader, had a cash balance of 10,000,000FCFA and delivery van
valued at 14,000,000FCFA. He did not keep proper books of accounts, but a careful analysis
of his business transactions revealed the following assets and liabilities after one year of
trading:
Delivery van 22,400,000
Stock 120,000
Trade creditors 3,500,000
Loan from Joys 8,000,000
Office equipment 1,100,000
Trade debtors 7,800,000
Cash at bank 6,080,000
The bank statement showed that during the year, he had withdrawn 16,000,000FCFA for
private purposes and that private investments had been sold for 7,000,000FCFA, while the
funds realized had been left in the business. Aaron decided to provide 4,800,000FCFA as value
for depreciation on the delivery vans at 31/12/201x
Required:
1) Prepare statements of affaires at 1/1/201X and 31/12/201X
2) Determine the profit or loss for the period ended 31/12/201X
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